CebuPac to raise fares on 11 international, domestic routes

MANILA, Philippines - Budget airline Cebu Air Inc. (Cebu Pacific) is set to raise fares for certain international and domestic routes as rising aviation jet fuel prices continue to eat up into the company’s earnings.

Cebu Pacific is seeking the green light from the Civil Aeronautics Board (CAB) to raise the fuel surcharge imposed on passengers of seven international routes and four domestic destinations.

The low cost carrier has filed a petition seeking to impose an eight percent increase in fuel surcharge imposed on passengers of Manila to Incheon, Manila to Busan, Cebu to Incheon, and Cebu to Busan flights to $54 per passenger from the current $50 per passenger.

It also filed a separate petition for authority to impose upward adjustment of fuel surcharge ranging between 20 percent and 48 percent on its international passenger tickets for five other international routes.

It intends to raise the fuel surcharge on passengers of Manila to Shanghai flights by 48 percent to $37 per passenger from $25; Manila to Beijing flights by 43 percent to $50 from $35; Manila to Giangshou flights by 40 percent to $35 from $25; Manila to Xiamen flights by 30 percent to $26 from $20; and Manila to Siam Rep flights by 20 percent to $30 from $25.

Cebu Pacific is also set to raise the fare imposed on passengers of four domestic destinations as it is seeking an increase in fuel surcharge by as much as 25 percent.

The budget airline is seeking a 12.5 percent increase in fuel surcharge for its Manila to Pagadian flights (P450 from P400), a 17 percent increase for its Cebu to Clark (P350 from P300), a 20 percent increase for its Cebu to Cagayan de Oro flights (P300 from P250), and a 25 percent increase of its Cebu to Bacolod flights (P250 from P200).

On the other hand, Cebu Pacific decided to cut the fuel surcharge on Manila to Dipolog flights by 11 percent to P400 from P450 and the Manila to Zamboanga flights by 25 percent to P300 from P400.

The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market.

Latest results of the Jet Fuel Price Monitor of the International Air Transportation Association (IATA) showed that average price of jet fuel rose one percent to $123.8 per barrel from a month ago level nearing the full year target of $124 per barrel set by IATA.